More and more international companies are selecting Slovenia as a location for investment.

A base in this south-east European country means a base in the very heart of Europe and – thanks to excellent transport routes and commercial contacts – easy access to countries across the continent and beyond.

Slovenia acts as a bridge between west and southeast Europe while its location at the northernmost tip of the Adriatic Sea makes it the fastest and the cheapest gateway to European markets for Asian exporters.

Heavyweight firms such as Bosch Siemens, Goodyear, Henkel, IBM, Microsoft, Oracle and Renault among others have a long-term commitment to the country. This diverse collection of firms is proof that Slovenia is a location which suits a wide array of business activities. And an excellent information and communication technology infrastructure – one of the most advanced in the region – means that each and every company in Slovenia has easy access to the technology crucial to modern business.

Despite Slovenia's population of only two million, the country's dynamic economy often punches above its weight in international trade and business. As a member of the European Union and the euro area, Slovenia is seamlessly integrated into the continent's trade flows, offering investors a business-friendly environment and attractive investment opportunities.

Also easily accessible is a well qualified, well educated, internationally savvy workforce. A typical Slovenian employee is highly computer literate and speaks two or more foreign languages, one of which tends to be English. And unlike other low cost investment locations, such workers are not a scarce commodity in Slovenia. Some traditionally found a lack of entrepreneurship among the workforce, but this is changing.

An excellent location, excellent transport, excellent information and communication technology, and an excellent workforce – they all add up to a highly attractive location for foreign direct investment. But finance is of course the bottom line for business. Here too Slovenia offers significant benefits. Incentives exist for those interested in FDI, and a grant based cost-sharing scheme is available in 2010/11.

 

And while Slovenia has been hit by the global economic downturn it has not been as severely affected as other nations in the region. A 7.3 percent decline in GDP was seen in 2009, but modest economic growth of 0.9 percent has been predicted for 2010, and 2.5 percent for 2011. The government is working hard to make those predictions a reality with a raft of economic reforms which should also serve to make the country more attractive still to foreign investors.

So the question remains – why is this country, which has so many favourable conditions for investors, lagging behind when it comes to foreign direct investments in the so called “New Europe”? Are Slovenian companies doing well enough in the international market to drive the growth of the economy? Is Slovenia competitive enough from the point of view of investors? Is there something other than return on investment numbers which can help convince international businesses to develop a presence in Slovenia?